Dow has best day since 1933 as Congress nears deal on aid

The Dow's gain of 11.4% was its largest percentage increase since 1933.

Posted: Mar 24, 2020 3:10 PM
Updated: Mar 24, 2020 4:15 PM

NEW YORK (AP) — Stocks surged on Wall Street Tuesday, sending the Dow up more than 2,100 points, biggest-ever point gain, as Congress nears a deal to inject $2 trillion into the economy to mitigate damage from the coronavirus outbreak.

The Dow's gain of 11.4% was its largest percentage increase since 1933.

Treasury yields rose in an encouraging sign that demand for low-risk assets was easing.

The market has seen other big rebounds recently, only for them to wash out immediately. Investors say they need to see the number of new infections peak before markets can find a bottom.

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NEW YORK (AP) — The Dow Jones Industrial Average surged 10% Tuesday as Congress and the White House neared a deal to inject nearly $2 trillion of aid into the coronavirus-ravaged economy.

The huge gains on Wall Street followed a worldwide rally as a wave of buying interrupted what has been a brutal month of nearly nonstop selling. Despite the gains, investors were far from saying markets have hit bottom. Rallies nearly as big as this have punctuated the last few weeks, and none lasted more than a day.

Investors have been frustrated waiting for the U.S. government to do what it can to help the economy, which is increasingly shutting down by the day. But both Democrats and Republicans said Tuesday they’re close on a massive economic rescue package, which will include payments to U.S. households and aid for small businesses and the travel industry, among other things.

A vote in the Senate could come later Tuesday or Wednesday, and if approved, it would follow the latest round of extraordinary aid launched by the Federal Reserve on Monday.

“I don't think there's any more confidence in the fundamental outlook, but the fact that we're making progress is good news,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management. “It’s sort of like, keep the patient alive in the emergency room so you can provide some treatment options.”

The buying circled the world. South Korean stocks surged 8.6%, Germany’s market jumped 11% and Treasury yields rose in a sign that investors are feeling less fearful.

The market has seen rebounds like this before, only for them to wash out immediately. Since stocks began selling off on Feb. 20, the S&P 500 has had six days where it’s risen, and all but one of them were big gains of more than 4%. After them, stocks fell an average of 5% the next day.

“One of the things to be careful about is thinking this will be the panacea or that this fiscal response will be sufficient,” said Eric Freedman, chief investment officer at U.S. Bank Wealth Management.

Ultimately, investors say they need to see the number of new infections peak before markets can find a floor. The increasing spread is forcing companies to park airplanes, shut hotels and close restaurants to dine-in customers. Altogether, estimates suggest at least 10% of the U.S. economy is shutting down, according to Rob Sharpe, head of investments and group chief investment officer at T. Rowe Price.

The Dow Jones Industrial Average rose 1,933 points, or 10.4%, to 20,525. The S&P 500 was up 8.8%, and the Nasdaq was up 7.6%.

Economists are topping each other’s dire forecasts for how much the economy will shrink this spring due to the closures of businesses, and a growing number say a recession seems inevitable.

To support the economy while health experts work to corral the virus, the Federal Reserve on Monday pledged to buy as many Treasurys and mortgage-backed securities as it takes to keep lending markets working smoothly..

Investors are waiting for Congress and the White House to also do what they can. They debated through the weekend and Monday on a plan to send cash to households and help support the hard-hit travel industry, among other things. After negotiations dragged through the night, a Senate vote could come later Tuesday or on Wednesday.

That helped travel-related stocks surge to the market's biggest gains. Norwegian Cruise Lines, MGM Resorts and American Airlines Group were all up at least 30%. All, though, remain 60% or more below where they were last month.

Other areas of the market that were hardest hit in recent weeks were also helping to lead the market higher, including energy companies and banks.

Governments and central banks in other countries around the world are unveiling unprecedented levels of support for their economies in an attempt to limit the scale of the upcoming virus-related slump. Germany, a bastion of budgetary discipline, also approved a big fiscal boost.

The gains came even as the first reports arrived showing how badly the outbreak is hitting the global economy. In the United States, a preliminary reading on business activity in March showed the steepest contraction on record, going back to 2009. Reports were also gloomy for Europe.

“Everyone was prepared for a set of shockers, and that is precisely what we got, but they are not a surprise,” said Chris Beauchamp, chief market analyst at IG. “It is at times like this that the market’s propensity to look forward is demonstrated most effectively.”

More dour data is nearly assuredly on the way. On Thursday, economists expect a report to show the number of Americans applying for jobless claims easily set a record last week. Some say the number could be way beyond 1 million, amid a wave of layoffs, toping the prior record of 695,000 set in 1982.

Helping to lift sentiment in markets is news from China that it is preparing to lift the lockdown in Wuhan, the epicenter of the outbreak, and from Italy reporting a reduction in the number of new cases and coronavirus-related deaths.

“It's still early days, of course — perhaps investors can start to envisage life beyond the coronavirus,” said Craig Erlam, senior market analyst at OANDA Europe. “That could make stocks look a little more attractive, although anyone jumping back in now will need to have nerves of steel.”

For most people, the coronavirus causes only mild or moderate symptoms, such as fever and cough. Those with mild illness recover in about two weeks. Severe illness including pneumonia can occur, especially in the elderly and people with existing health problems. Recovery could take six weeks in such cases.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 92100

Reported Deaths: 2037
CountyConfirmedDeaths
Hennepin26264926
Ramsey10635318
Dakota7280125
Anoka5870132
Stearns386524
Washington365255
Scott248733
Olmsted234627
Nobles194316
Blue Earth16326
Wright15537
St. Louis145138
Carver13757
Clay131640
Rice13118
Mower13085
Sherburne111414
Kandiyohi9552
Winona85518
Lyon6614
Waseca5668
Steele5302
Freeborn5293
Benton5223
Nicollet51516
Watonwan5144
Todd4832
McLeod4702
Chisago4661
Crow Wing46418
Le Sueur4464
Otter Tail4074
Beltrami3885
Martin35710
Goodhue3449
Pine3070
Itasca29914
Polk2944
Douglas2782
Isanti2710
Becker2572
Carlton2461
Cottonwood2190
Unassigned21852
Morrison2161
Pipestone21610
Dodge2140
Chippewa2031
Meeker1892
Sibley1893
Brown1822
Wabasha1800
Yellow Medicine1692
Rock1620
Murray1562
Mille Lacs1533
Redwood1511
Cass1423
Jackson1371
Renville1367
Faribault1320
Swift1231
Houston1170
Koochiching1173
Roseau1170
Kanabec1168
Pennington1151
Fillmore1110
Lincoln1050
Stevens941
Pope900
Hubbard881
Aitkin741
Big Stone730
Wadena670
Grant594
Wilkin583
Lake570
Norman520
Marshall501
Lac qui Parle471
Mahnomen461
Red Lake401
Traverse290
Clearwater260
Lake of the Woods211
Kittson120
Cook60

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 82537

Reported Deaths: 1289
CountyConfirmedDeaths
Polk15571261
Woodbury517363
Johnson507327
Black Hawk442188
Linn3878109
Story336917
Dubuque298541
Scott287528
Dallas274138
Pottawattamie203338
Buena Vista195912
Marshall176834
Sioux14693
Wapello129657
Webster121314
Clinton109220
Plymouth109120
Muscatine109054
Crawford10425
Cerro Gordo101721
Warren9456
Jasper80232
Des Moines7517
Marion7465
Tama69931
Henry6554
Carroll6505
Lee6137
Wright5701
Dickinson5036
Boone4938
Bremer4757
Washington44911
Louisa42615
Mahaska36819
Delaware3653
Franklin34618
Hamilton3233
Jackson3173
Winneshiek3156
Floyd3103
Clay3094
Benton3021
Hardin2931
Winnebago28413
Lyon2804
Poweshiek2708
Butler2652
Buchanan2621
Clarke2623
Jones2583
Emmet25410
Allamakee2526
Shelby2501
Kossuth2490
Chickasaw2400
Guthrie2406
Clayton2373
Cedar2331
Sac2320
Cherokee2222
Grundy2183
Madison2092
Fayette2052
Iowa1971
Harrison1962
Mitchell1860
Howard1856
Humboldt1833
Calhoun1792
Hancock1772
Mills1731
Palo Alto1720
Pocahontas1562
Lucas1536
Monroe15310
Page1500
Cass1482
Osceola1460
Monona1441
Jefferson1351
Appanoose1293
Taylor1271
Union1263
Davis1224
Van Buren1121
Ida1100
Fremont1040
Worth1040
Keokuk1011
Greene990
Montgomery905
Wayne842
Audubon741
Adair681
Decatur660
Ringgold482
Adams330
Unassigned40
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